Moody's may cut Advanta

Moody's Investors Service said it placed the ratings of Advanta Corp. (Ba3 senior unsecured) under review for possible downgrade.

The rating action reflects Moody's concerns regarding Advanta's weakening asset quality trends, heightened pressures on its liquidity, and the effect of these factors on the firm's core profitability and franchise value as it navigates a challenging environment for credit card lenders.

The agency noted that Advanta's asset quality and the cost and availability of its access to securitization markets have been adversely affected by the continued deterioration of the U.S. economy and the recent sharp intensification of the credit crunch.

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